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The Indian equity benchmark indices, BSE Sensex and Nifty50, commenced trading in the red on Friday, marking a downturn in the market. While BSE Sensex hovered around the 81,500 level, Nifty50 settled above 24,950. By 9:16 AM, BSE Sensex was trading at 81,518.82, experiencing a decline of 93 points or 0.11%. Meanwhile, Nifty50 stood at 24,964.65, down 34 points or 0.14%.
The prevailing sentiment in the market suggests consolidation within a range, with stock-specific activity anticipated. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal, highlighted the potential influence of the IT sector, stating that its performance is likely to set the pace for other companies. Technical analysis indicates that the Nifty has support at 24,950-25,000 and 24,750 levels, while immediate resistance is perceived at 25,100. The subsequent resistance zone is projected at 25,250-275 levels.
The downward trend in the Indian markets coincides with a similar pattern observed in Wall Street's main indexes on Thursday. Investors are scrutinizing higher-than-expected inflation and unemployment claims data to gauge the health of the U.S. economy and anticipate the future trajectory of interest rates. Despite this, Asian shares exhibited a positive performance on Friday, bucking the trend of losses on Wall Street.
The global energy landscape also saw fluctuations, with oil prices easing on Friday following a rally the previous day. Nevertheless, prices remain poised for a second consecutive weekly gain. Investors are carefully evaluating the impact of hurricane damage on U.S. demand against potential supply disruptions in the event of an Israeli attack on Iranian oil sites.
The U.S. dollar weakened against major peers, retreating from two-month highs reached overnight. This decline was attributed to signs of weakness in the labor market, reinforcing the case for faster Federal Reserve rate cuts. Furthermore, eleven stocks, including BirlaSoft, Bandhan Bank, Hindustan Copper, RBL Bank, Granules, Manappuram, PNB, GNFC, IDFC First Bank, SAIL, and Tata Chemicals, are currently subject to the F&O ban period.
Foreign institutional investors (FIIs) adopted a net selling position on Thursday, offloading shares worth Rs 4,926 crore. In contrast, domestic institutional investors (DIIs) purchased shares valued at Rs 3,878 crore. The net short position of FIIs escalated from Rs 1.28 lakh crore on Wednesday to Rs 1.55 lakh crore on Thursday.
Source: Stock market today: BSE Sensex opens in red; Nifty50 below 25,000